GM cuts 401(k) contributions, severance of salaried workers

In addition to cost-saving plans for hourly workers, General Motors is cutting back on the white collar side as well. GM will no longer make contributions to its salaried employees' 401(k) retirement plans, and its severance packages will also be cut back. GM had previously contributed 20 cents (down from 50 cents starting last April) on the dollar, up to six percent, to the 401(k) plans of its salaried workers.
GM has also dropped the stipulation that three percent of the employee contribution and 100 percent of the company contribution be invested in GM stock.